South32 Reduces Capital Expenditure Guidance
MELBOURNE, Australia--South32 Ltd. (S32.AU) is sticking with annual production targets but scaling back spending plans for the year.
The mining company said Tuesday it now expected sustaining capital expenditure of US$470 million for the year through June, from an earlier target of US$500 million. About two-thirds of the reduction related to the deferral of underground development work at its Appin colliery in eastern Australia, which was suspended earlier this year.
The change comes a day after Rio Tinto PLC (RIO) reduced capital expenditure guidance for 2017 to less than US$4.5 billion from a prior target of US$5 billion as it sought additional productivity improvements at its mining operations in an effort to boost cash flow.
South32 was spun out of BHP Billiton Ltd. (BHP.AU) in 2015. Listed in Sydney, London and Johannesburg, the company's operations range from energy coal used to fuel power stations, alumina and manganese to silver, nickel and zinc.
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(END) Dow Jones Newswires
December 04, 2017 18:13 ET (23:13 GMT)